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KWAME	NKRUMAH	UNIVERSITY	OF	SCIENCE	&	TECHNOLOGY	
COLLEGE	OR	ART	AND	BUILT	ENVIRONMENT	
FACULTY	OF	BUILT	ENVIRONMENT	
	
	
DEPARTMENT	OF	BUILDING	TECHNOLOGY	
	
	
	
	
CTM	156	–	INTRODUCTION	TO	MANAGEMENT	IN	
CONSTRUCTION	
	
CREDITS	HOURS	–	3	
	
	
COURSE	MATERIALS	
By	
PROF.	BK	BAIDEN	PhD	FGIOC	MPMI	MAACE	AMASCE
CTM	156	–	Introduction	to	Management	in	Construction		
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Table of Contents
COURSE	OUTLINE	.............................................................................................................................	1	
Unit	1	–	Definition	of	Management..............................................................................................	1	
A.		Meanings	of	Management	.....................................................................................................	1	
B.	Features	of	Management	.......................................................................................................	1	
C.	Definition	of	Management	.....................................................................................................	2	
D.	Activities	of	Management/Managers	.................................................................................	2	
UNIT		2	–	EARLY	PERSPECTIVE	AND	CLASSICAL	APPROACH	...............................................	4	
1.	Early	perspectives	...................................................................................................................	4	
2.	Classical	Management	Approach	.........................................................................................	4	
A.		Scientific	Management	...............................................................................................................................	4	
B.		Administrative	Management...................................................................................................................	7	
C.		Bureaucratic	Management	....................................................................................................................	11	
UNIT	3	-	HUMAN	RELATIONS	APPROACH	................................................................................13	
1.	Hawthorne	Studies	................................................................................................................13	
2.	Motivational	Need	Studies...................................................................................................14	
3.	Human	Involvement	in	Enterprise	...................................................................................15	
UNIT	4	-		Modern	Management	Approach	...............................................................................16	
1.		Systems	Management	..........................................................................................................16	
A.	Open	System..................................................................................................................................................	16	
B.	Closed	System	...............................................................................................................................................	17	
2.	Recent	theorists	.....................................................................................................................17	
A.	Porter’s	Five	Forces	...................................................................................................................................	17	
B.	Organisational	Configurations	.............................................................................................................	18	
3.	Contingency	Theorist	............................................................................................................18	
A.	Contingency	Theory	..................................................................................................................................	19	
UNIT	5	-		Management	Functions	...............................................................................................20	
1.	Planning....................................................................................................................................20	
A.	Definition	........................................................................................................................................................	20	
B.	Importance	.....................................................................................................................................................	20	
C.	Process	.............................................................................................................................................................	20	
D.	Types	................................................................................................................................................................	21	
2.	Organising	................................................................................................................................21	
A.	Definition	........................................................................................................................................................	21
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B.	Importance	.....................................................................................................................................................	21	
C.	Process	.............................................................................................................................................................	22	
3.	Leading	.....................................................................................................................................22	
A.	Leading	-	Definition	...................................................................................................................................	22	
B.	Leadership	–	Definition	...........................................................................................................................	22	
C.	Leadership	Characteristics	.....................................................................................................................	22	
D.	Leadership	Styles........................................................................................................................................	22	
E.	Leadership	power	.......................................................................................................................................	23	
4.	Controlling	...............................................................................................................................24	
A.	Definition	........................................................................................................................................................	24	
B.	Features	...........................................................................................................................................................	24	
C.	Importance	.....................................................................................................................................................	24	
5.	Other	Functions	of	Management	.......................................................................................25	
A.	Staffing	.............................................................................................................................................................	25	
B.	Communication............................................................................................................................................	25	
C.	Delegation	.......................................................................................................................................................	25	
D.	Directing	.........................................................................................................................................................	25	
Unit	6	–	Relevance	of	Organisations	.........................................................................................26	
1.	Definition	.................................................................................................................................26	
2.	Need	for	organisations	.........................................................................................................26	
3.	Organisation	Structure	.........................................................................................................26	
A.	Definition	........................................................................................................................................................	26	
B.	Achievement..................................................................................................................................................	26	
C.	Forms	................................................................................................................................................................	27	
4.	Organisation	Chart	................................................................................................................27	
A.	Definition	........................................................................................................................................................	27	
B.	Purpose	............................................................................................................................................................	28	
C.	Types	.................................................................................................................................................................	28	
D.	Limitations	.....................................................................................................................................................	28	
5.	Span	of	Control	.......................................................................................................................28	
A.	Definition	........................................................................................................................................................	28	
B.	Factors..............................................................................................................................................................	28	
C.	Wide	Span	.......................................................................................................................................................	29	
D.	Narrow	Span	.................................................................................................................................................	29	
6.	Oragnisational	Relationships	.............................................................................................29	
A.	Direct	................................................................................................................................................................	29
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B.	Lateral	..............................................................................................................................................................	29	
C.	Functional	.......................................................................................................................................................	29	
D.	Staff....................................................................................................................................................................	29	
Unit	7	–	Management	Theories	..................................................................................................30	
1.	Hierarchy	of	Needs	................................................................................................................30	
A.	Background....................................................................................................................................................	30	
B.	Theory	..............................................................................................................................................................	31	
C.	Implications	...................................................................................................................................................	31	
D.	Comments	......................................................................................................................................................	31	
2.	Hygiene-Motivation	...............................................................................................................31	
B.	Theories	...........................................................................................................................................................	31	
C.	Comments	.......................................................................................................................................................	31	
D.	Implications...................................................................................................................................................	32	
3.	Employee	Motivation	............................................................................................................32	
A.	Background....................................................................................................................................................	32	
B.	Theory	X	..........................................................................................................................................................	32	
C.	Theory	Y	..........................................................................................................................................................	32	
D.	Comments	......................................................................................................................................................	33	
4.	Immaturity/Maturity	............................................................................................................33	
A.	Background	and	Theory	..........................................................................................................................	33	
B.	Personality	Changes	..................................................................................................................................	33	
C.	Comments	.......................................................................................................................................................	33	
Unit	8	–	Introduction	to	Construction	Management	.............................................................34	
1.	Construction	Management	..................................................................................................34	
2.	Construction	Manager	..........................................................................................................34	
3.	Code	of	Ethics	..........................................................................................................................34	
4.	Main	Responsibilities	...........................................................................................................35	
5.	Job	Description	.......................................................................................................................35	
6.	Skills	and	Knowledge	............................................................................................................35	
7.	Career	Opportunities	............................................................................................................36	
READING	LIST..................................................................................................................................36
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COURSE	OUTLINE	
1. Definition	of	Management	-	Unit	1	
2. Evolution	of	Management	–	Units	2-4	
3. Management	functions.	–	Unit	5	
4. Relevance	of	organisations	–	Unit	6	
5. Management	theories	–	Unit	7	
6. Introduction	to	Management	in	Construction	–	Unit	8	
	
Unit	1	–	Definition	of	Management	
1. Meanings	of	Management	
2. Features	of	Management	
3. Definition	
4. Management	activities	
	
A.		Meanings	of	Management	
Management	has	3	different	meanings;	
1. Noun	–	refers	to	a	group	of	managers	
2. Process	–	refers	to	the	function	of	management	such	as	planning,	organising,	etc	
3. Discipline	–	refers	to	the	subject	of	management	in	formal	educational	curriculum.	
	
B.	Features	of	Management	
1. Continuous	and	never-ending	process.	
2. Getting	things	done	through	people.	
3. Result	oriented	science	and	art.	
4. Multidisciplinary	in	nature.	
5. A	group	and	not	an	individual	activity.	
6. Follows	established	principles	or	rules.	
7. Aided	but	not	replaced	by	computers.	
8. Situational	in	nature.	
9. Need	not	be	an	ownership.	
10. Both	an	art	and	science.	
11. Management	is	all	pervasive.	
12. Management	is	intangible.	
13. Managers	use	a	professional	approach	in	work.	
14. Management	is	dynamic	in	nature.
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C.	Definition	of	Management	
Several	definitions	exist	and	have	been	modified	and	refined	over	the	years.	
Early	management	theorist/researchers	had	a	basic	definition	with	a	focus	on	central	control.	
Recent	modifications/refinement	defined	management	as	an	organisational	process.	
The	definition	focuses	on	the	roles	and	functions	within	the	organisations.	
	
Early	definition	
“To	manage	is	to	forecast	and	plan,	organise,	command,	co-ordinate	and	control.”	–	H	Fayol	
	
Recent	definitions	
“the	art	of	getting	things	done	through	and	with	people	in	formally	organised	groups”	–	H	Koontz	
	
“a	multi-purpose	organ	that	manages	business,	managers,	workers	and	work”	–	P	Druker	
“the	art	of	getting	things	done	through	people”	–	M	Follet	
	
“Management	is	a	process	of	planning,	organizing,	leading	and	controlling	the	efforts	of	organisation’s	
members	and	of	using	all	other	organizational	resources	(labour,	capital,	information	and	
technology)	to	achieve	stated	organizational	goals.”	-	MH	Mescon	
	
Management	is	an	individual	or	a	group	of	individuals	that	accept	responsibilities	to	run	an	
organisation.		
Managers/Management	motivate	others	to	do	the	work	and	co-ordinate	to	achieving	set	objectives.	
	
It	can	be	concluded	from	the	above	definitions	that	“Management”	brings	together	Men	and	Women,	
Money,	Machines,	Materials,	Methods	and	Markets	(the	6	M’s).	These	resources	are	used	to	achieve	
objectives	of	as	high	sales,	maximum	profits,	expansion,	etc.	
	
D.	Activities	of	Management/Managers	
1. Work	with	and	through	people,	i.e.	inside	their	own	organizations	and	with	other	managers	and	
people	in	other	organizations.		
2. They	work	to	achieve	both	personal	and	organizational	goals.	
3. Act	as	channels	of	communication	within	their	own	organization	and	with	others.		
4. Have	personal	goals	that	should	not	conflict	with	those	of	the	organization.	
5. Accountable	and	responsible	and	the	success	and	failure	of	their	subordinates	is	a	direct	
reflection	on	them.	
6. Accountable	for	their	own	work	as	well	the	work	of	others;	and	this	implies	that	a	manager	is	
expected	to	accomplish	more	than	others.
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7. Recognize	and	construct	alliances.	
8. Review	situations,	analyse	options,	which	are	often	competing,	or	conflicting	and	set	priorities.	
They	aim	at	a	combination	that	leads	to	maximum	profit	or	minimum	cost.	
9. Think	analytically	and	break	down	problems	into	constituent	parts	to	arrive	at	feasible	
solutions.	They	are	able	to	identify	the	concept	of	a	problem	and	solution.	
10. Mediate	because	organizations	are	based	on	people	who	often	disagree	about	goals	and	
priorities.	Disputes	can	lead	to	disruptions	and	lower	productivity.	
11. Politicians,	build	relationships,	use	personal	skills	of	persuasion	and	compromise.	
12. Make	difficult	decisions	and	follow	through	their	difficult	decisions	and	measures	even	when	
they	are	not	popular.
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UNIT		2	–	EARLY	PERSPECTIVE	AND	CLASSICAL	APPROACH	
Four	perspective/approach	
1. Early	perspectives	
2. Classical	management		
3. Human	Relations	
4. Modern	Management	
	
The	following	would	be	discussed	in	Unit	2	
1. Early	perspectives	
2. Classical	management		
	
1.	Early	perspectives	
Management	is	not	a	new	concept.	
The	first	known	management	ideas	were	recorded	in	3000-4000	B.C	
The	success	in	the	construction	of	the	pyramids	clearly	shows	the	existence	of	some	sound	
management	principles	
Management	principles	were	also	known	to	have	been	used	by	the	Romans	in	the	constructions	of	
cathedrals.	
Industrialisation	and	factory	systems	presented	a	new	challenge	for	practitioners.	
The	need	to	develop	and	improve	a	rational	system	of	managing	both	people	and	work	became	
very	necessary.	
Principles	were	therefore	developed	and	documented	with	an	objective	of	improving	productivity	
to	meet	the	demands	of	the	time.	
	
2.	Classical	Management	Approach	
Rapid	industrialisation	led	to	rational	development	of	principles	for	handling	workers,	materials,	
money	and	machinery.	The	approach	is	characterised	by	a	rational	economic	view	and	comprises	
management	theories	and	principles	that	have	been	further	categorised	into:	
1. Scientific	Management	
2. Administrative	Management		
3. Bureaucratic	Management		
	
A.		Scientific	Management	
THEORY	
Scientific	management	theories	were	developed	through	the	following:	
1. Based	on	reflection	upon	personal	experiences	at	work	to	develop	management	theories.	
2. The	primary	goal	was	to	achieve	the	highest	productivity	possible	through	efficient	work	
methods	and	encouraging	employees	to	take	advantage	of	these	new	techniques.	
3. Aimed	at	producing	a	set	of	rational	principles	that	could	be	applied	universally	in	order	to
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achieve	organisational	efficiency.	
	
Theories	developed	were	concerned	with:		
1. the	structuring	of	work	for	higher	levels	of	productivity:	and		
2. organisational	rather	than	human	motivation	or	organisational	culture.		
Management	approach	was	prescriptive	-	set	out	what	managers	ought	to	do	in	order	to	fulfill	their	
leadership	functions	within	the	organisation.		
	
CONCEPTS		
These	are	focused	on	the	following:	
• Develop	a	standard	method	for	performing	a	task	and	train	workers	to	use	these	methods.		
• Managers	to	develop	precise	procedures	based	each	organizational	task	
• Provide	workers	with	the	proper	tools	needed	to	work.		
• Choose	selected	employees	for	specific	tasks.		
• Assign	specific	tasks	to	workers	that	were	stronger	both	mentally	and	physically.		
• Provide	wage	incentive	when	output	was	increased.		
• Motivate	employees	to	increase	their	output	with	the	use	of	additional	benefits.	
• The	success	of	the	scientific	managers	brought	about	changes	in	the	worker-manager	ratio		
	
CRITICISMS	
• Workers	felt	exploited	because	their	social	aspect	of	life	was	disregarded.		
• Workers	were	treated	as	machines	and	not	humans.	
• Management	stereotyped	workers	and	did	not	allow	them	to	prove	their	skills	in	other	areas.		
• Workers	were	not	allowed	to	form	innovative	ways	to	perform	their	tasks.	
	
THEORISTS	
Four	contributors	to	the	Scientific	Management	theory	will	be	discussed.		
These	are	
1. Frederick	Taylor	
2. Henry	Gant	
3. Frank	Gilbreth	
4. Lilian	Gilbreth
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1.	Frederick	Winslow	Taylor	(1856-1915)	
Mechanical	Engineer	(American)	
He	had	a	Strong	interest	in	efficiency	of	working	methods.	
FW	Taylor	also	had	shop-floor	to	managerial	experiences.	
He	developed	ideas	through	systematic	analysis.	
FW	Taylor	believed	that	maximum	efficiency	in	organisations	leads	to	maximum	profits.	
	
Management	Principles	by	FW	Taylor	
1. Manual	workers	are	motivated	primarily	by	the	prospects	of	financial	rewards.	
2. Offer	the	possibility	of	earning	good	wages	and	a	manual	worker	will	work	hard	to	achieve	that	
objective.	
3. Manual	workers	do	not	identify	with	their	collective	objective	and	cannot	be	trusted	to	work	
without	supervision	i.e.	not	capable	of	managing	their	own	work.	
Implications		
1. Employees	should	be	paid	wages	directly	related	to	the	volume	of	work.	
2. Division	of	labour	should	be	applied	to	the	maximum.	
3. Set	targets	and	reward	for	achieving	the	targets.	
4. Identify	suitable	persons	and	allocate	task	appropriate	to	their	level	of	skills.	
5. Management	should	plan	and	control	all	the	efforts	of	the	workers.	
1. Job	descriptions	should	be	precise	and	clear.			
Impact		
• Development	of	true	science	of	work	rather	than	rule	of	thumb	methods	of	working.	
• Scientific	selection,	training	and	development	of	workers	rather	than	random	choice	and	self-
training	by	workers.	
• Science	of	work	and	training	to	ensure	work	followed	laid	down	principles.	
• Constant	and	intimate	co-operation	of	management	and	workers	to	ease	reduce	workload	
previously	only	on	workers.	
	
2.	Henry	Laurence	Gantt	(1861-1919)	
Mechanical	Engineer	(American)	
Worked	as	a	management	consultant	on	steel	within	the	ship	building	industry.	
Believed	in	application	of	scientific	management	principles	to	work.	
Applied	these	principles	to	increase	productivity	
Known	for	significant	contribution	to	production	management.	
	
Production	Management	by	Gantt	
Gantt’s	contribution	to	production	management	included;	
a.	The	Gantt	chart:		
An	important	project	management	tool
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Provides	a	graphic	schedule	for	the	planning	and	controlling	of	work,	and	recording	progress	
towards	stages	of	a	project.		
A	modern	variation,	Program	Evaluation	and	Review	Technique	(PERT).	
	
b.	Concept	of	Industrial	Efficiency		
The	concept	involved	the	following:	
1. The	application	of	scientific	analysis	to	all	aspects	of	the	work	in	progress	to	ensure	
efficiency.		
2. Ensure	that	industrial	management’s	role	leads	to	improvement	in	the	system	by	
eliminating	chance	and	accidents.	
c.		The	Task	and	Bonus	System:		
Linkage	of	the	bonus	paid	to	managers	to	how	well	they	taught	their	employees	to	improve	
performance.	
d.		The	social	responsibility	of	business:		
The	belief	that	businesses	have	obligations	to	the	welfare	of	the	society	in	which	they	
operate.	
	
3.	Frank	Bunker	Gilbreth	(168-1924)	
Management	Engineer	(American)	
Worked	as	a	bricklayer,	builder,	inventor	and	a	management	Engineer.	
Made	significant	contribution	to	work	study.	
Described	the	science	of	management	as	applying	measurement	to	management.	
Laid	down	the	systematic	rules	and	procedures	for	operating	efficiently.	
Developed	flow	process	chart	used	in	process/operational	analysis.	
Designed	fatigue	reduction	system	that	increased	productivity		
He	documented	the	best	way	to	perform	the	task	within	the	physical	comfort	of	the	worker.	
Pioneered	the	application	of	motion	analysis	to	work	in	progress.	
	
4.	Lillian	Moller	Gilbreth	(1878-1972)	
Psychologist	and	Industrial	Engineer	(American)	
Focused	on	improving	overall	job	performance	through	worker	satisfaction	and	efficiency.	
Contributed	to	micro	motion	study	techniques	in	engineering	and	management.		
Applied	psychology	to	industrial	management.	
Linkage	of	management	engineering	and	human	relations.	
	
B.		Administrative	Management	
THEORY	
Administrative	Management	theorists	looked	at	the	best	way	to	combine	jobs	and	people	into	an	
efficient	organisation.	
Attempts	to	find	a	rational	way	to	design	an	organization	as	a	whole.		
Based	on	formalised	administrative	structure	and	their	areas	of	responsibilities.
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PRINCIPLES	
Departmentalisation	of	activities	within	an	organisation.		
Identification	and	classification	of	different	work	activities	into	groups	or	department.		
Focuses	on	improving	the	efficiency	of	management	for	standardisation	and	use	at	the	operational	
level.		
Top-down	approach.		
	
THEORISTS	
Four	contributors	to	the	Scientific	Management	theory	will	be	discussed.		
These	are	
1. Henry	Fayol	
2. Lyndall	Urwick	
3. Mary	Follet	
4. Chester	Barnard	
	
1.		Henri	Fayol	(1841-1925)	
Mining	Engineer	and	Industrialist	(French)	
Credited	for	the	development	of	the	key	principle	of	management.	
He	believed	that	more	emphasis	should	be	more	emphasis	should	be	laid	on	organisational	
management	and	the	human	and	behavioral	factors	in	the	management.	
Viewed	managerial	activities	from	an	oragnisational	point	as	not	the	exclusive	preserve	of	
management	but	part	of	overall	activities	of	the	entire	organisation.	
Developed	the	first	management	principles.	
	
Management	contribution	
Fayol	examined	the	3	mains	aspects	of	management.	
These	are:	
1. The	activities	of	the	enterprise	–	what	enterprises	do;	
2. Elements	of	management	–	what	management	does;	and	
3. Principles	of	management	–	series	of	practical	suggestions.	
	
Enterprise	Activities	
All	activities	can	be	attributes	to	industrial	groups	divided	into.	
1. Technical	–	production,	manufacturing.	
2. Commercial	–	buying,	selling,	batter.	
3. Financial	–	search	and	use	of	capital.	
4. Security	–	protection	of	property	and	persons.	
5. Accounting	–	stocktaking,	costs,	stats.	
6. Managerial	–	forecast,	plan,	organise	and	control.
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Management	Elements	
Managers	need	to	discharge	responsibilities	in	order	to	help	the	firm	achieve	objectives.	
Management	job	activities	are	proportioned	as;	
1. Managerial	–	40%	
2. Technical	&	Commercial	–	15%	
3. Financial,	Security	&	Accounting	–	10%	
It	is	not	clear	how	Fayol	got	these	figures.	
Believed	to	be	based	on	Fayol’s	personal	experiences	in	management.	
	
Management	Principles	
Fayol’s	approach	looked	at	organisations	from	the	top	down.	
Comprehensive	view	of	role	of	management	in	organisation.	
Developed	14	principles	including:	
1. Specialisation	and	division	of	Work;	
2. Unity	of	command;	and	
3. Fair	remuneration	system.	
4. Fair	internal	disciplinary	system.	
5. Linkage	of	authority	to	responsibility.	
6. Existence	of	centralisation	to	different	extents	in	firms	of	different	sizes	depending	on	quality	of	
managers.	
7. Encouragement	of	initiative	amongst	all	staff.	
8. Justice	and	kindness	towards	all	employees.	
9. Use	of	organisation	charts	and	job	description	
10. Harmony	and	teamwork	should	be	encouraged	to	help	boost	employee	morale	and	encourage	
unity	of	purpose.	
11. Existence	of	order	–	everything	in	its	right	place.	
12. Creation	of	stable	work	groups	and	job	security	for	personnel.	
13. Common	good	supersedes	individual	interest.	
14. Setting	out	of	objectives	throughout	the	firm.	
	
2.		Lyndall	Fownes	Urwick	(1891-1983)	
Business	Management	Consultant	(British)	
Integrated	the	ideas	of	earlier	theorists	into	a	comprehensive	theory	of	administration.	
Believed	in	control	of	social	organisations	through	application	of	rules	or	universal	principles.	
Famous	for	“Elements	of	Administration”.	
Developed	ten	principles	of	Administration.
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Administrative	Principles	
Urwick’s	10	principles	were	meant	to	bring	balance	to	the	various	units	of	the	organisation.	They	
are	sometimes	referred	to	as	administrative	best	practices.	These	are:	
1. Objective	–	overall	purpose.	
2. Specialisation	–	one	group,	one	function.	
3. Co-ordination	–	depends	on	organisation	process.	
4. Authority	–	every	group	with	supreme	authority.	
5. Responsibility	–	superiors	responsible	for	the	action	or	inaction	of	subordinates.	
6. Definition	–	clearly	defines	jobs,	duties,	etc.	
7. Correspondence	–	authority	should	be	commensurate	with	responsibility.	
8. Span	of	control	–	max	subordinates	size	of	6	for	superiors	to	be	effective.	
9. Balance	–	balance	the	various	units	in	firms.	
10. Continuity	–	structure	within	organisations	should	provide	for	continuity	of	activities.	
	
3.		Mary	Parker	Follet	(1868-1933)	
Management	Consultant	(American)	
Pioneered	research	work	in	organizational	theory	and	behaviour	and	the	understanding	of	lateral	
processes	within	hierarchical	organisations.		
Believed	that	achieving	common	employee	goals	will	reduce	organizational	conflict.		
Management	must	gain	the	trust	and	respect	of	employees	for	efficiency.	
	
4.		Chester	Irvin	Barnard	(1886-1961)	
Business	Executive	(American)		
Pioneered	research	work	in	management	theory	and	organizational	studies.	
Developed	the	informal	organization	concept	based	management	and	subordinates	informal	
grouping	to	create	a	bond.		
Existence	of	cooperation	depends	on	how	the	organisation	satisfies	the	motives	of	its	members	
while	attaining	its	explicit	goals.	
Developed	the	theory	on	incentives	and	authority	within	an	organisation.	
Known	for	his	work	on	the	functions	of	the	executives:	
1. Establish	and	maintain	communication	system;	
2. Secure	essential	services	from	other	members;	
3. Formulate	organizational	purposes	and	objectives.
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C.		Bureaucratic	Management	
THEORY	
Explores	ways	to	eliminate	personal	views	and	bring	a	more	formalised	structure	to	organizations.		
It	creates	organisations	that	are	authoritative,	rigid	and	structured.	
Based	on	the	management	of	large	hierarchical	organisations	with	fixed	rules,	impersonal	
relationships,	rigid	adherence	to	procedure	and	highly	specialised	division	of	labour.		
FOCUS	
The	theory	focuses	on:		
1. dividing	organizations	into	hierarchies;	and		
2. establishing	strong	lines	of	authority	and	control.		
Based	on	the	premises	that	organizations:		
1. develop	comprehensive;	and		
2. require	detailed	standard	operating	procedures	for	all	routinised	tasks.	
	
VIEWS	AND	MISCONCEPTIONS		
1. Minimises	opportunities	for	corruption,	favoritisms	and	arbitrary	exercises	of	power.	
2. Can	sometimes	lead	to	extra	paperwork.	
3. Can	be	identified	with	any	large	organization.		
4. Can	sometimes	be	mistaken	for	civil	service	(governmental	organizations)	but	actually	is	
being	used	at	various	types	of	organizations.		
5. Leads	to	inflexible	organisation	setup.	
	
THEORIST	
Karl	Maximillian	Weber	(1864-1920)	
Sociologist	and	Political	Economist	(German)	
His	works	focused	on	the	rationalization	and	disenchantment	associated	with	the	rise	of	capitalism	
and	modernity.	
Famous	for	his	critique	of	socialism	as	an	economically	impossible	system.	
Developed	theory	of	bureaucracy.	
Credited	for	management	theory	on	the	role	of	a	leader	in	an	organisation.	
	
Theory	of	bureaucracy	
1. Standardised	procedures.	
2. Formal	division	of	responsibility.	
3. Hierarchical	arrangement	of	offices.	
4. Separation	of	personal	and	private	business.
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5. Decision	and	action	formulated	and	recorded	in	writing.	
6. Strict,	systematic	discipline	and	control	of	the	official's	work.	
7. Appointment	of	offices	based	on	technical	competencies	and	cannot	be	inherited.	
8. Career	structure	and	a	promotion	system	based	on	seniority	or	merit	based	on	the	
judgment	of	superiors.	
9. Impersonality	with	equality	of	treatment	for	all	clients	of	the	organization.	
10. Officials	do	not	own	resources	but	are	accountable	for	their	usage.	
	
Implications	
1. Leveling	of	the	social	classes	by	allowing	a	wide	range	of	recruits	with	technical	competence	
to	be	taken	by	any	organization.	
2. Plutocracy	(rule	of	the	wealthy),	because	of	the	time	required	to	achieve	the	necessary	
technical	training.	
3. Greater	degree	of	social	equality	due	to	the	dominance	of	the	spirit	of	impersonality	or	
objectivity.	
	
Criticism	
1. Overspecialisation	and	less	co-ordination	of	department.	
2. Undermining	of	rule	of	impersonality	by	nepotism,	politics,	etc	
3. Slow	decision-making	due	to	rigid	procedures.	
4. Killing	of	initiatives.	
5. Lack	of	critical	thinking	and	resistance	to	change	by	organisations.
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UNIT	3	-	HUMAN	RELATIONS	APPROACH	
THEORY	
Referred	to	as	Human	Relations	Theorist.	
Academics	who	researched	into	human	behaviour	at	the	workplace	
Concerned	with	the	efficiency	and	effects	of	the	physical	working	conditions	on	employees.	
Researched	into	human	factors	at	work	on	issues	such	as	motivation,	communication,	leadership	
style,	etc.	
THEORISTS	
Suggested	that	jobs	should	be	designed	to	meet	higher	levels	needs	by	allowing	workers	to	use	
their	full	potential.	
Includes	the	following	theorist	and	their	contributions:	
1. Mayo	-	The	Hawthorne	Studies	
2. Maslow	&	Hertzberg	-	Motivational	needs	
3. McGregor	-	Human	involvement	in	Enterprise		
	
George	Elton	Mayo	(1880-1949)	
Psychologist,	Sociologist	and	Organization	Theorist	(Australian).	
Credited	with	the	founding	of	the	Human	Relations	Movement	and	conducting	the	Hawthorne	
Studies	
Researched	into	behaviour	of	manager	and	ways	of	improving	productivity.	
Had	a	number	of	belief	and	was	criticised	by	sociologists.	
Emphasised	the	importance	of	relationships	among	organisation’s	workers.	
Conducted	a	number	studies	through	observation	of	employee	productivity	levels	under	varying	
work	environments.		
Concluded	on	the	source	of	employee	motivation,	which	became	the	basis	for	team	building	and	
group	dynamics.	
	
1.	Hawthorne	Studies		
Background	
Research	at	the	Hawthorne	Works	of	the	Western	Electric	Company	in	Chicago.		
The	research	involved	the	separation	of	two	groups	of	six	women.		
Their	conditions	of	work	were	altered	in	a	number	of	ways,	over	a	five-year	period.	
They	were	then	observed	for	the	effects	on	production	and	the	morale	of	the	group.	
Results	
1. The	women	felt	important	because	they	had	been	singled	out.		
2. The	women	developed	good	relationships	with	each	other	because	they	were	allowed	to	set	
their	own	work	patterns.
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3. The	working	environment	became	more	pleasant	due	to	improvement	in	relationships	among	
the	women.	
Conclusions	
1. Work	satisfaction	depends,	to	a	large	extent,	upon	the	informal	social	relationships	between	
workers	in	a	group	and	the	social	relationships	between	workers	and	their	bosses.	
2. Work	is	a	group	activity	and	an	employee’s	attitudes	and	effectiveness	are	conditioned	by	social	
demands	from	both	outside	and	inside	work	environment.	
3. Individual	workers	cannot	be	treated	in	isolation,	but	must	be	seen	as	members	of	a	group.	
4. Monetary	incentives	and	good	working	condition	are	less	important	to	the	individual	than	the	
need	to	belong	to	a	group.	
5. Informal	or	unofficial	groups	formed	at	work	have	a	strong	influence	on	the	behavior	of	those	
workers	in	a	group.	
Implications	
Managers	must	be	aware	of	these	'social	needs'	and	cater	for	them	to	ensure	that	employees	
collaborate	with	the	official	organization	rather	than	work	against	it.	
Criticism	
1. Restriction	of	human	capacity	and	freedom.	
2. Substituting	therapy	for	democracy.	
	
2.	Motivational	Need	Studies	
Studies	on	motivation	are	often	complex.		
Most	studies	focus	on	the	motivational	needs	of	the	individual	rather	than	the	organisation.		
They	are	further	categorised	as	basic	and	secondary	needs.	
Two	pioneers	are;	
a. Abraham	Maslow	
b. Frederick	Hertzberg	
	
Abraham	Harold	Maslow	(1908-1970)	
Psychologist	(American)	
Founded	Humanistic	Psychology.		
Noted	for	his	conceptualization	of	a	"hierarchy	of	human	needs”	–	Maslow’s	theory	
His	psychological	ideas	were	influenced	by	both	family	life	and	his	experiences.	
His	contribution	in	management	is	applicable	to	transpersonal	business	studies.	
	
Frederick	Irving	Hertzberg	(1923-2000)	
Psychologist	(American).	
Famous	for	his	contribution	to	business	management.
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Introduced	job	enrichment	and	the	Motivator-Hygiene	or	2-factor	theories.	
His	interest	in	motivation	was	triggered	by	interaction	with	his	colleagues	and	personal	
experiences.	
	
3.	Human	Involvement	in	Enterprise	
Studies	deal	with	implicit	and	explicit	assumptions	on	the	most	effective	ways	to	manage	people	
within	an	organisation	
Studies	led	to	the	replacement	of	conventional	directing	management	approach	with	human	nature	
based	self-directing	options.	
Key	contributor/pioneer;	
Douglas	McGregor	
	
Douglas	Murray	McGregor	(1906-1964)	
Management	Professor	(American)	
His	research	work	focused	on	“the	human	side	of	enterprise”.	
Made	contrasting	assumptions	about	the	nature	of	humans	in	the	work	place.		
These	assumptions	are	the	basis	of	Theory	X	and	Theory	Y	
Practical	application	of	Maslow’s	theory
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UNIT	4	-		Modern	Management	Approach	
THEORY	
Started	in	the	1950’s	as	a	result	of	growth	in	social-economics	and	scientific	institutions.		
Has	the	premises	that	the	worker	does	not	work	for	only	money	but	their	satisfaction	and	psycho-
social	well-being.	
Emphasises	on	non-	financial	award	and	focuses	on	the	development	of	each	factor	of	workers	and	
organization.		
Defines	modern	organisations	as	complex	systems.		
Uses	modelling	techniques	in	analyzing	and	understanding	the	inter-relationship	of	management	
and	workers	in	all	aspect	
Approach	includes	the	following	three	theories:		
1. Systems	management		
2. Recent	theorist	
3. Contingency	Thinking		
	
1.		Systems	Management	
Definition	
System	refers	to	a	group	of	interacting	units	or	elements	with	a	common	objective	and	purpose.	
Units	or	elements	can	be	people,	hardware	or	components.	
Systems	can	be	classified	as	open	or	closed	if	the	units	or	elements	are	mechanical	or	social.	
Both	systems	operate	within	a	boundary	that	can	be	apparent	or	perceived.	
Open	system	approach	views	the	organisation	as	an	interdependent	unit	interacting	constantly	
with	the	external	environment.	
The	system	therefore	has	no	apparent	or	rigidly	defined	boundaries.	
Closed	system	management	approach	however	views	the	organisation	as	independent	of	external	
or	environmental	influences.	
Boundaries	are	thus	defined.	
	
A.	Open	System	
Definition	
Refers	to	systems	that	interact	with	other	systems	or	the	outside	environment.	
For	example,	an	organisations	is	an	entity.	
Takes	inputs	from	the	environment	and	transforms	them.	
Releases	inputs	as	outputs	with	mutual	effects	on	the	organisation	itself	and	the	environment	in	
which	the	organisation	operates.	
	
Characteristics	
The	three	major	characteristics	of	open	systems	are:		
1. Receive	inputs	or	energy	from	their	environment.		
INPUT	-	Labour,	Material,	Finances,	Info
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2. Convert	these	inputs	into	outputs.		
TRANSFORMATION	-	Management	&	production	process	
3. Discharge	their	outputs	into	their	environment	 	
OUTPUT	-	Products/services,	profit/loss	
Early	contributors	to	open	system	theory:	
Daniel	Katz	(1903-1998)	Psychologist		
Robert	Khan	(1918-	)	Psychologist	 	
	
Work	of	Early	Contributors		
Viewed	organizations	as	open	systems	with	specialised	and	interdependent	subsystems		
Processes	of	communication,	feedback,	and	management	linked	the	subsystems.		
Argued	that	the	closed-system	approach	fails	to	take	into	account	how	organisations	are	
reciprocally	dependent	on	external	environments.	
	
B.	Closed	System	
Operates	within	defined	boundaries.	
Assumes	very	little	complexity.	
More	suited	to	mechanical	operations	and	environment	with	very	little	human	involvement.	
Does	not	rely	on	feedback	as	it	shuts	the	external	environment.	
Assumes	a	static	environment	and	variable	internal	organisational	parameters.	
	
2.	Recent	theorists	
Took	a	comprehensive	view	of	the	organization	
Predicted	the	most	likely	conditions	to	produce	organisations	capable	of	meeting	the	competing	
demands	of	their	various	stakeholders	
Concerned	with	strategic	management	of	organisation	involving	factors	such	as	values,	structure,	
leadership,	culture,	etc.	
Contributors	–	M.	Porter	&	H.	Mintzberg	
	
Michael	Eugene	Porter	(1914-)	
Harvard	University	Professor	with	interests	in	Management	and	Economics.	
His	focus	was	on:	
1. 	building	competitive	advantage	
2. Developing	corporate	strategies	
Developed	factors	that	drive	competitions	known	as	“Porter’s	Five	Forces”.	
	
A.	Porter’s	Five	Forces	
1. Existing	rivalry	between	firms.	
2. The	threat	of	new	entrants	to	existing	markets.
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3. The	threat	of	substitute	products	and	services.	
4. Bargaining	power	of	suppliers.	
5. Bargaining	power	of	buyers.	
	
Henry	Mintzberg	(1939-)	
A	renowned	international	academic.	
Research	interest	in	business	strategy	and	management.	
Developed	the	“Theory	on	Organisational	Form”.	
Theory	is	based	on	Organizational	configurations	framework,	a	model	that	describes	six	valid	
organizational	configurations.	
	
B.	Organisational	Configurations	
1. Mutual	adjustment	
2. Direct	supervision	
3. Standardization	of	work	processes,		
4. Standardization	of	outputs	
5. Standardization	of	skills	(as	well	as	knowledge)	
6. Standardization	of	norms	
	
3.	Contingency	Theorist	
Social	scientists	that	researched	on	workers	behaviour	and	interactions.		
Humanistic	perspective	based	on	the	idea	that	in	an	organization	there	is	no	one	best	way	in	the	
management	process	to	successfully	resolve	any	tailored	circumstances.		
Decisions	made	by	managers	must	take	into	account	all	aspects	of	the	current	situation.	–	“it	
depends”	approach	
Organizations,	people,	and	situations	vary	and	change	over	time.		
The	right	thing	to	do	depends	on	a	complex	variety	of	critical	environmental	and	internal	
contingencies.	
Their	approach	suggests	that	the	best	leadership	depends	on	the	situation	at	hand.	
No	particular	design	or	managerial	action	can	suit	all	time	and	all	situations.	
Contributor	–	Fred	Fiedler	
	
Fred	Edward	Fiedler	(1922-)	
An	industrial	and	organisational	psychologist	
He	helped	moved	forward	the	research	on	traits	and	personal	characters	of	leaders	to	leadership	
styles	and	behaviour.	
Introduced	contingency	leadership	model	
Effectiveness	of	leadership	is	a	result	of	two	factors,	style	and	situation.
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A.	Contingency	Theory	
There	is	no	one	best	way	of	leading.	
A	leadership	style	that	is	effective	in	some	situations	may	not	be	successful	in	others.	
Leaders	who	are	very	effective	at	one	place	and	time	may	become	unsuccessful	either	when	
transplanted	to	another	situation	or	when	the	factors	around	them	change.
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UNIT	5	-		Management	Functions		
Management	is	creative	problem	solving	achieved	through	functions	of	management.	
Functions	of	Management	define	the	process	of	management	as	distinct	from	finance,	
marketing,	and	other	business	functions.		
The	functions	provide	a	useful	way	of	classifying	information	about	management.	
Most	basic	management	texts	have	been	organized	around	a	functional	framework.	
Main	functions	are	
1. planning	
2. organising	
3. leading	and		
4. controlling.	
Additional	functions	include;		
Staffing,	Motivating,	Commanding,	communicating,	delegating,	etc	
	
1.	Planning	
A.	Definition	
Broadly	defined	as	a	concept	of	executive	action	that	embodies	the	skill	of	anticipating,	influencing,	
and	controlling	the	nature	and	direction	of	change	
Deciding	in	advance	what	to	do	and	how	to	do	i.e	a	process	which	involves	the	determination	of	
future	course	of	action.	
Involves	setting	objectives	and	developing	appropriate	courses	of	action	to	achieve	these	
objectives.		
Requires	managers	to	be	aware	of	the	environmental	conditions	facing	their	organization	and	
forecast	future	conditions.		
Planning	therefore	requires	that	managers	be	good	decision-makers.	
Bridges	the	gap	from	“where	we	are”	to	“where	we	want	to	go”.	
Planning	makes	it	possible	for	things	which	would	not	otherwise	happened	to	occur	.		
	
B.	Importance	
1. Increases	the	organization's	ability	to	adapt	to	future	eventualities.		
2. Ensures	more	effective	use	of	organization's	resources	and	increases	the	company	
competitiveness	in	its	industry.	
3. Reduces	unnecessary	pressures	of	immediacy,	mistakes	and	oversights.	
4. Enables	the	identification	of	future	problems	and	makes	it	possible	to	provide	for	such	
contingencies.		
	
C.	Process	
1. Setting	objectives	for	the	entire	organisation.	
2. Developing	premises	about	future	occurrence.	
3. Identifying	alternative	courses	of	action	to	act	upon	them.
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4. Evaluating	alternative	courses	by	to	weighing	the	pros	and	cons	of	each	alternative.	
5. Selecting	an	alternative	adoption	and	implementation.	
6. Monitoring	to	ensure	that	objectives	are	achieved.	
	
D.	Types	
i.	Strategic	
Analyzing	competitive	opportunities	and	threats,	as	well	as	the	strengths	and	weaknesses	of	the	
organization.		
Determine	how	to	position	the	organization	to	compete	effectively	in	their	environment.		
Has	a	long	time	frame,	often	three	years	or	more.		
Strategic	planning	generally	includes	the	entire	organization		and	conducted	by	top	management.	
	
ii.	Tactical	
Intermediate-range	planning	between	1-3	years	
Designed	to	develop	relatively	concrete	and	specific	means	to	implement	the	strategic	plan.		
Conducted	by	middle-level	managers	
	
iii.	Operational	
It	is	short	term,	from	1	week	to	1	year	
Generally,	assumes	the	existence	of	objectives	and	specifies	ways	to	achieve	them.		
designed	to	develop	specific	action	steps	that	support	the	strategic	and	tactical	plans.		
	
2.	Organising	
A.	Definition	
Organising	is	the	process	of	defining	and	grouping	activities	and	establishing	authority	
relationships	among	them	to	attain	organizational	objectives	
Involves	developing	an	organizational	structure	and	allocating	human	resources	to	ensure	the	
accomplishment	of	objectives.		
Deciding	how	best	to	departmentalise,	or	cluster	jobs	into	departments	to	effectively	coordinate	
efforts.	
	
B.	Importance	
1. Helps	organisations	to	reap	the	benefit	of	specialization.	
2. Provides	for	optimum	utilization	of	resources.	
3. Helps	in	effective	administration.	
4. Provides	channels	for	expansion	and	growth.	
5. Achieves	co-ordination	among	different	departments.	
6. Creates	scope	for	new	change.
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C.	Process	
1. Identification	and	division	of	work	in	accordance	with	plans.		
2. Creation	of	department	to	group	employees	with	similar	skills	or	works.	
3. Linking	of	departments	to	operate	in	a	co-ordinated	manner.		
4. Assigning	of	duties	to	employees	on	the	basis	of	their	skills	and	capabilities.		
5. Defining	hierarchal	structure.	
	
3.	Leading	
A.	Leading	-	Definition	
Influencing	others	toward	the	attainment	of	organizational	objectives.		
Effective	leading	requires	the	manager	to:		
1. motivate	subordinates;	
2. communicate	effectively;	and		
3. effectively	use	power.		
To	become	effective	at	leading,	managers	must	understand	their	subordinates'	personalities,	
values,	attitudes,	and	emotions.	
Studies	of	motivation	provide	important	information	on	how	to	engender	productive	effort.		
Studies	of	communication	provide	direction	on	how	to	effectively	and	persuasively	communicate.		
Studies	of	leadership	and	leadership	style	provide	information	“qualities	that	make	a	manager	a	
good	leader”	and	“most	appropriate	and	effective	leadership	styles	in	certain	situations”	
	
B.	Leadership	–	Definition	
Leadership	is	a	process	by	which	an	executive	can	direct,	guide	and	influence	the	behaviour	and	
work	of	others	towards	accomplishment	of	specific	goals	in	a	given	situation.		
Potential	to	influence	behaviour	of	others	or	the	capacity	to	influence	a	group	towards	the	
realization	of	a	goal.		
Leaders	are	required	to	develop	future	visions,	and	to	motivate	the	organizational	members	to	
want	to	achieve	the	visions.	
	
C.	Leadership	Characteristics	
Inter-personal	process	that	influences	and	guides	workers	towards	attainment	of	goals.	
It	is	a	group	process.	It	involves	two	or	more	people	interacting	with	each	other.	
It	is	the	human	factor	which	binds	a	group	together	and	motivates	it	towards	goals.	
Involves	shaping	and	moulding	the	behaviour	of	the	group	towards	accomplishment	of	
organizational	goals.	
	
D.	Leadership	Styles	
Leadership	is	situation	bound	and	the	perfect/standard	leadership	style	is	the	one	which	assists	a	
leader	to	get	the	best	out	of	the	people	who	follow	him.	
These	styles	include:
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i. Autocratic		
ii. Laissez-Faires	
iii. Democratic/participative	
iv. Bureaucratic	
	
i.	Autocratic	Style	
The	leader	has	complete	command	and	hold	over	their	employees/team.		
Speedy	decision-making	and	greater	productivity	under	leader’s	supervision.	
Greater	employee	absenteeism	and	turnover.		
Works	only	when	the	leader	is	the	best	in	performing	or	when	the	job	is	monotonous,	unskilled	and	
routine	in	nature	or	where	the	project	is	short-term	and	risky.	 		
	
ii.	Laissez-faire	Style	
The	leader	totally	trusts	their	employees/team	to	perform	the	job	themselves.		
Allows	focus	on	key	intellectual/rational	aspect	of	his	work.	
Does	not	focus	on	the	management	aspect	of	his	work.		
The	style	works	only	when	the	employees	are	skilled,	loyal,	experienced	and	intellectual.	
	
iii.	Democratic	Style	
Team	members	are	invited	and	encouraged	by	the	leader	in	decision-making	process.	
The	ultimate	decision-making	power	rests	with	the	leader.		
Leads	to	satisfied,	motivated	and	more	skilled	employees.		
Leadership	style	is	time-consuming.		
Creates	an	optimistic	work	environment	and	also	encourages	creativity.		
	
iv.	Bureaucratic	Style	
There	is	strict	adherence	to	the	organizational	rules,	policies	and	procedures	by	the	leader.		
Gradually	develops	over	time	as	a	result	of	the	philosophy,	personality	and	experience	of	the	leader.		
Discourages	creativity	and	does	not	make	employees	self-contented.		
The	style	is	more	suitable	when	safe	work	conditions	and	quality	are	required.		
	
E.	Leadership	power	
The	influence	of	a	leader	over	his	followers	is	often	referred	to	as	power.		
There	are	5	sources	of	power:	
1. Legitimate	–	formal	position	or	role	
2. Coercive	-	sanctions	or	other	negative	action	
3. Reward	-	control	over	desired	resources		
4. Expert	–	professional	knowledge,	skill	
5. Referent	-		charisma	or	strong	relationship
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4.	Controlling	
A.	Definition	
Controlling	ensures	that	expected	performance	does	not	deviate	from	initial	standards.	
The	process	completes	the	sequence	of	management	process	and	consist	of	3	steps:	
1. establishing	performance	standards;		
2. comparing	actual	performance	against	standards;	and		
3. taking	corrective	action	when	necessary	
Performance	standards	are	often	stated	in:	
1. monetary	terms	such	as	revenue,	costs,	or	profits	units	produced,		
2. number	of	defective	products	
3. levels	of	customer	service.	
The	measurement	of	performance	can	be	done	in	several	ways,	depending	on	the	performance	
standards,		
Effective	controlling	requires		
1. the	existence	of	plans,		
2. a	clear	understanding	of	where	responsibility	for	deviations	from	standards	lies.		
Two	traditional	control	techniques	are		
1. budget	and		
2. performance	audit.		
	
B.	Features	
Controlling	affects	only	future	happenings	but	not	the	happened.	The	past	performance	is	
measured	for	taking	future	corrective	actions.	
Every	manager	in	an	organisation	has	to	perform	the	control	function.	This	may	be	quality,	
inventory,	production,	or	administrative	control.	
Control	is	a	continuous	process,	it	follows	a	definite	pattern	and	time-table,	month	after	month	and	
year	after	year	on	a	continuous	basis.	
	
C.	Importance	
1. Control	system	acts	as	an	adjustment	in	organisational	operations.		
2. Controlling	checks	whether	plans	are	being	observed	and	suitable	progress	towards	the	
objectives	is	being	made	or	not,	and	if	necessary	any	action	to	control	the	deviations.	
3. Controlling	is	required	for	monitoring	adherence	to	policy	frameworks	and	verification	of	
the	quality	of	various	policies.		
4. Controlling	allows	exercising	authority	and	forming	superior-subordinate	relationship.	
5. With	the	presence	of	authority	or	control	the	individuals	will	work	properly	and	exhibit	
better	performance	to	reach	the	targets	set	for	them.	
6. Control	system	ensures	the	organisational	efficiency	and	effectiveness.	When	Proper	system	
exists	the	organisation	effectively	achieves	its	objectives.
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5.	Other	Functions	of	Management	
A.	Staffing	
Management	process	of	acquiring,	developing,	employing,	appraising,	renumerating	and	retaining	
right	type	of	people	at	the	right	positions	and	time	in	the	organisation.		
It	is	the	function	by	which	managers	build	an	organisation	through	the	recruitment,	selection,	and	
development	of	individuals	as	capable	employees.		
Staffing	is	‘putting	people	to	jobs’.	
	
B.	Communication	
Communication	is	the	process	of	creating,	transmitting	and	interpreting	ideas,	facts,	opinions	and	
feelings.		
It	is	a	process	that	is	essentially	a	sharing	one	i.e.	a	mutual	interchange	between	two	or	more	
persons.	
A	manager	must	have	four	key	skills	in	communication,	which	are	listening,	discussing,	advocating	
and	writing.	
	
C.	Delegation	
It	is	the	assignment	to	another	person	of	the	formal	authority	and	accountability	for	carrying	out	
specific	tasks	i.e	transfer	of	legitimate	power.	
While	both	authority	and	accountability	include	an	element	of	responsibility,	the	manager	can	
never	shed	responsibility	by	delegation.		
Responsibility	is	the	manager’s	overall	function.		
Managers	can	however	make	subordinates	responsible	to	them	for	their	actions.	
	
D.	Directing	
Giving	instructions,	guiding,	counselling,	motivating	and	leading	the	staff	to	achieve	organisational	
goals.		
Directing	is	a	key	managerial	function	performed	by	the	manager	along	with	planning,	organising,	
staffing	and	controlling.		
Directing	is	a	continuous	process	initiated	at	top	level	and	flows	to	the	bottom	through	
organisational	hierarchy.
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Unit	6	–	Relevance	of	Organisations	
Definition	&	Need	for	organisation.	
Organisation	structure	-	definition,	achievement	&	forms.	
Organisation	chart	-	definition,	types,	purpose	and	limitations	
Span	of	control	–	definition,	factors	&	types.	
Organisational	relationships	-	types	
	
1.	Definition	
Several	definitions	exist:	
“A	body	set	up	to	meet	a	set	of	needs.”	
“An	arrangement	of	human	and	physical	resources	based	upon	the	need	to	control	and	integrate	the	
activities	of	individuals	and	groups.”	
“The	structure	of	an	enterprise	resulting	from	the	division	and	grouping	of	work	into	functions,	
subfunctions	and	jobs.”	
	
2.	Need	for	organisations	
• Preserve	and	extend	knowledge,	a	process	that	is	vital	to	civilization.		
• Store	and	develop	knowledge	and	pass	it	on	to	the	next	generations	continuously.		
• Provide	careers,	work	and	livelihood	
• Efficiently	organised	and	controlled	organisations	bring	satisfaction	and	self-fulfillment	to	
employees.	
• Preserve	and	extend	knowledge,	a	process	that	is	vital	to	civilization.		
• Store	and	develop	knowledge	and	pass	it	on	to	the	next	generations	continuously.		
• Provide	careers,	work	and	livelihood	
• Efficiently	organised	and	controlled	organisations	bring	satisfaction	and	self-fulfillment	to	
employees.	
	
3.	Organisation	Structure	
A.	Definition	
“An	arrangement	of	lines	of	authority	and	communication	within	a	firm	and	allocated	duties	and	
responsibilities.”	
“A	sum	total	of	ways	in	which	labour	is	divided	into	distinct	tasks	and	responsibilities	and	coordinated	
along	defined	lines	of	communication”	
“It	is	the	supporting	framework	designed	for	planning	and	executing	of	activities	of	a	firm.”	
	
B.	Achievement	
1. Creation	of	hierarchies	and	work	groups.	
2. Mechanism	for	allocating	tasks	and	responsibilities.	
3. Coordination	of	activities.
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4. Setting	up	of	control	span.	
5. Centralising	and	decentralising	activities.	
6. Determining	the	extent	of	individual	responsibilities.	
	
C.	Forms		
Organization	structures	are	created	on	the	basis	of	arrangement	of	activities	in	the	organisation.		
The	three	main	structural	forms	in	the	organisation	are:	
i. Traditional	
ii. Divisional	
iii. Adaptive/Matrix	
	
i.	Traditional	
Based	on	functional	division	and	departments	
They	are	characterised	by	authority	lines	for	all	levels	in	the	management.	These	include:	
1. Line	–	line	of	command	from	top	to	bottom	
2. Line	and	staff	–	top	to	bottom	line	structure	and	staff	structure	for	support.	
3. Functional	–	based	on	function	or	profession.	
	
ii.	Divisional	
Based	on	the	different	divisions	in	the	organization.		
Structure	is	further	grouped	into:	
1. Products	–	different	types	of	products.	
2. Market–	specific	markets	of	operation.	
3. Geographical	–	location.	
	
iii.	Adaptive	
Designed	as	to	cope	with	the	unique	nature	of	undertaking	and	the	situations	in	the	organization.	
There	are	two	types:	
1. Project	–	suitable	for	undertaking	periodic	specialised	work	and	development	of	a	unit	
2. Matrix	–	combines	the	merits	of	project	structure	and	functional	specialization	with	full	
time	specialized	units	capable	of	handling	more	than	one	project	at	a	time.	
	
4.	Organisation	Chart	
A.	Definition	
“A	diagram	showing	the	pattern	of	authority	within	an	organization.”	
“A	diagram	showing	the	formal	structure	of	an	organisation	and	the	interrelationships	of	its	parts,	
positions	and	jobs.”	
Shows	managers	and	their	sub-workers	
Shows	the	relationships	between	organisation	members.
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B.	Purpose	
1. Define	system	of	accountability	of	a	firm.	
2. Determine	employee	status	within	the	management	hierarchy.	
3. Facilitate	organisational	design.	
4. Preparation	of	management	succession	plan.	
5. Show	lines	of	communication.	
6. Show	span	of	control	of	superiors	or	management	staff.	
	
C.	Types	
i. Hierarchical:		
Organization	is	divided	into	different	levels	with	top	to	bottom	line	of	command.		
ii. Matrix:		
People	with	same	skill	are	grouped	and	report	to	their	respective	managers.	
iii. Flat	or	Horizontal:		
Few	or	no	levels	are	used	in	small	or	individual	unit	organizations.	
	
D.	Limitations	
• Social	relationships	that	develops	within	the	organisation	are	not	shown.	
• Relationships	shown	are	often	simplistic	and	do	not	reflect	actual	complex	relationships.	
• Easily	becomes	outdated	and	changes	are	often	resisted.	
• Does	not	show	management	style	adopted.	
• De-motivates	workers	who	feel	their	ranks	are	lower	than	expected.	
	
5.	Span	of	Control		
A.	Definition	
The	number	of	employees	or	immediate	subordinates	controlled	by	and	reporting	to	a	superior.	
The	number	of	subordinate	employees	directly	accountable	to	a	manager	
Two	basic	spans	exist	
1. Wide	span	
2. Narrow	span	
B.	Factors	
1. The	nature	of	subordinates’	work.	
2. Skill,	capabilities,	qualifications,	experience	of	subordinates	and	manager.	
3. Availability	and	use	of	ICT.	
4. Subordinates	knowledge	of	formal	work	rules	and	procedures.	
5. Management	style	and	organisation	approaches.	
6. Depth	of	organisation	hierarchy.
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C.	Wide	Span		
Has	more	than	six	horizontal	blocks	of	work	functions	–	flat	structure	with	few	levels	
Subordinates	are	well	trained	and	enthusiastically	carry	out	instructions.	
There	is	high	team	spirit	and	superiors	are	always	in	touch	with	the	base	of	the	organization.	
Effective	for	simple	tasks	and	in	organisation	with	excellent	communication.	
	
D.	Narrow	Span	
Has	a	maximum	of	six	horizontal	blocks	of	work	functions	-	tall	structure	with	many	levels	
Superiors	are	able	to	focus	and	give	full	attention	to	the	needs	of	immediate	subordinates.	
It	facilitates	and	enhances	specialisation	of	function,	easy	vertical	communication,	and	effective	
coordination	of	subordinates’	work.	
Employees	aspire	to	rise	in	status.	
	
6.	Oragnisational	Relationships	
A.	Direct		
The	relation	exists	between	a	superior	and	subordinates	
Instructions	given	by	superior	are	expected	to	be	carried	out	by	subordinate	
Direct	line	of	authority	
Exist	at	any	level	within	the	organisation.	
	
B.	Lateral	
Exists	among	employee	on	an	equal	level	of	responsibilities.	
They	are	answerable	to	the	same	superior	
Relation	promotes	collaboration	and	coordination	on	matter	of	mutual	benefit.	
It	is	a	reciprocal	relation.	
	
C.	Functional	
Exists	between	a	specialist	and	any	member	of	the	organisation.	
There	is	an	indirect	line	of	authority	in	other	department.	
Direct	line	of	authority	exist	within	the	specialist	department.	
It	is	a	professional	advisory	relation.	
	
D.	Staff	
Occurs	at	higher	levels	of	management.	
Implies	no	authority.	
Carries	only	an	advisory	responsibility.
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Unit	7	–	Management	Theories	
1. Theory	of	hierarchy	of	needs	
2. Hygiene	motivation	theory	
3. Employee	motivation	theory	
4. Maturity/Immaturity	Theory	
	
1.	Hierarchy	of	Needs	
A.	Background	
Developed	by	Abraham	Maslow	from	investigations	into	human	behavior.	
Five	level/sets	of	goals	called	needs.	
1. Basic/physiological,	
2. Security/safety,	
3. Belonging/Social,	
4. Ego/esteem,	and	
5. Self-actualization/self-fulfillment.	
	
	
	
	
1. Physiological	needs	-	hunger,	thirst,	shelter	
2. Safety	-	protection	against	danger	/deprivation.	
3. Belonging	-	desire	to	belong	to	a	group,	give	and	receive	friendship	and	associate	with	people.	
4. Esteem	-	the	desire	for	self-esteem	and	self-respect,	need	for	recognition.	
5. Self	actualisation	-	urge	by	individuals	for	self-development,	creativity	and	job	satisfaction.
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B.	Theory	
“The	needs	and	wants	of	a	person	drive	him/her,	motive	and	produce	a	never-ending	sequence	of	
replacement	of	lower	by	higher	needs”.	
	
C.	Implications	
Reward	systems	aimed	to	satisfy	an	individual's	lower	level	needs	-	Outmoded		
Satisfaction	of	the	individual's	higher	level	needs	for	esteem	and	self-fulfillment-	Recent	
	
D.	Comments	
Maslow’s	comments	
Creative	people	are	motivated	by	self-fulfillment	needs	even	if	other	needs	are	not	satisfied.	
People	with	narrow	life	experience	may	have	lower	levels	of	aspirations.	
Satisfied	needs	lead	to	new	wants	and	continue	even	when	lower	need	become	unsatisfied.	
The	need	to	maintain	high	ideals	outweigh	any	other	needs.	
	
2.	Hygiene-Motivation	
A.	Background	
Developed	by	Frederick	Herzberg	from	research	on	human	relations	and	motivation	
2	theories	of	motivation.	
1. Hygiene	theory:	includes	the	work	and	organizational	environment	
2. Motivation	theory:	involves	what	people	actually	do	on	the		job.	 	
	
B.	Theories	
i.	Hygiene	Theory	
“Factors	exist	within	the	organsation	that	do	not	lead	to	higher	levels	of	motivation	but	without	them	
there	is	dissatisfaction”.	
Factors	are	physiological	needs	and	can	be	satisfied	with	money.	
Working	conditions,	salaries,	status,	job	security,	etc.	 	
	
ii.	Motivation	Theory	
“Factors	exist	within	the	organsation	that	result	from	internal	instincts	in	employees,	yielding	
motivation	rather	than	compliance.”	
Factors	are	psychological	needs	and	can	be	fulfilled	by	activities	that	lead	to	growth.	
Achievement,	Recognition,	Growth	/	advancement,	Interest	in	the	job,	etc.	
	
C.	Comments	
Both	these	approaches	(hygiene	and	motivation)	must	be	done	simultaneously.		
Treat	people	as	best	you	can	so	they	have	a	minimum	of	dissatisfaction.
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Use	people	so	they	get	achievement,	recognition	for	achievement,	interest,	and	responsibility	and	
they	can	grow	and	advance	in	their	work.	
	
D.	Implications		
Jobs	should	have	sufficient	challenge	to	utilize	the	full	ability	of	the	employee.	
Employees	who	show	high	levels	of	ability	should	be	given	increasing	responsibility	levels.		
If	a	job	cannot	be	designed	to	use	an	employee's	full	abilities,	then	automation	should	be	
considered	or	replace	the	employee	with	one	the	require	a	lower	level	of	skill.	
	
3.	Employee	Motivation	
A.	Background	
Developed	by	Douglas	McGregor	from	studies	on	the	behaviour	of	individuals	at	work.	
Formulated	2	model	on	how	employees	behaved	at	work.		
The	assumptions	are	known	as:	
1. Theory	X,	
2. Theory	Y	 	 	 	
	
B.	Theory	X	
	“The	average	human	being	has	an	inherent	dislike	of	work	and	will	avoid	it	if	he	can”.	
Comments	
Workers	must	be	controlled	and	threatened	before	they	will	work	hard	enough.	
The	average	human	prefers	to	be	directed,	dislikes	responsibility,	is	unambiguous,	and	desires	
security	above	everything.	
Implications	
Theory	gives	rise	both	to	"tough"	management	with	punishments	and	tight	controls.	
Ignores	financial	rewards	and	the	opportunity	to	self-fulfillment.	
Employee	have	limited	opportunities	and	behave	in	the	expected	fashion.	
	
C.	Theory	Y	
“The	average	human	being	is	neither	lazy	nor	inherently	unproductive	and	his	behaviour	at	work	
depend	on	how	he	is	treated	by	his	manager.”	
Comments	
Workers	naturally	expend	physical	and	mental	effort	at	work	
Workers	will	direct	themselves	to	work	if	they	are	committed	to	the	goals	of	the	organisation.	
Implications	
The	average	worker	learns,	under	proper	conditions,	to	accept	but	to	seek	responsibility.	
Workers	have	the	imagination,	creativity,	and	ingenuity	can	be	used	to	solve	work	problems.	
Conditions	of	modern	industrial	life	has	led	to	partial	utilisation	of	the	intellectual	potentialities	of	
the	average	employee.
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D.	Comments	
The	potential	of	employees	should	be	recognised	for	organisational	effectiveness.	
Theory	Y	is	useful	for	managers	and	professionals	and	conducive	to	participative	problem	solving.	
Employees	will	contribute	more	to	the	organisation	if	they	are	treated	as	responsible	and	valued	
employees.	
	
4.	Immaturity/Maturity	
A.	Background	and	Theory	
Developed	by	Chris	Argyris	from	the	examination	of	industrial	organizations.		
Determine	what	effect	management	practices	have	had	on	individual	behavior	and	personal	growth	
within	the	work	environment.	
“Seven	personality	changes	should	take	place	in	the	personality	of	individuals	if	they	are	to	develop	
into	mature	people	over	the	years.”	
	
B.	Personality	Changes	
1. Move	from	a	passive	state	-	state	of	increasing	activity.	
2. Develop	from	a	state	of	dependency	upon	others	-	state	of	relative	independence.	
3. Behave	in	only	a	few	ways	-	capable	of	behaving	in	many	ways.	
4. Have	erratic,	casual,	and	shallow	interests	-develop	deeper	and	stronger	interests.	
5. Very	short	time	perspective	involving	only	the	present,	-	increased	time	perspective	to	include	
the	past	and	the	future.	
6. Subordinate	to	everyone	-	move	to	equal	or	superior	positions	with	others.	
7. Lack	of	self-awareness	-		self-awareness	and	self-control	
	
C.	Comments	
Personality	changes	reside	on	a	continuum	and	that	the	"healthy"	personality	develops	from	
"immaturity"	to	"maturity”.	
Changes	are	only	general	tendencies,	but	they	give	an	indication	on	the	matter	of	maturity.		
Norms	of	the	individual's	culture	and	personality	inhibit	and	limit	maximum	expression	and	
growth.	
Few	employee,	if	any,	develop	to	full	maturity.
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ÓProf	BK	Baiden	2018	 Page	34	
Unit	8	–	Introduction	to	Construction	Management	
1. Construction	management	
2. Construction	Manager	
3. Code	of	Ethics	
4. Responsibility	
5. Job	Description	
6. Skills	and	knowledge	requirements	
7. Career	opportunities	
	
1.	Construction	Management	
The	study	and	practice	of	the	managerial	and	technological	aspects	of	the	construction	industry	
Includes	construction,	construction	science,	and	construction	technology),		
Contractual	arrangement	where	one	party	to	a	construction	contract	serves	as	a	construction	
consultant,	providing	both	design	and	construction	advice.	
	
2.	Construction	Manager	
Supervises	and	directs	operations	on	a	construction	project	to	make	sure	it	is	completed	safely,	on	
time	and	within	budget.	
Sometimes	referred	to	as	site	managers	or	site	agents.	
Has	full	responsibility	for	the	whole	project	–	on	small	sites.	
May	be	in	charge	of	a	particular	section	–	on	large	site.	
	
3.	Code	of	Ethics	
i. Client	Service.			
Serve	clients	with	honesty,	integrity,	candor,	and	objectivity	and	provide	competent	service.			
ii. Qualifications	and	Availability.			
Accept	assignments	for	which	you	are	qualified	and	assign	staff	to	projects	in	accordance	
with	their	qualifications.		
iii. Standards	of	Practice.			
Provide	services	consistent	with	the	established	and	accepted	standards	of	the	profession.	
iv. Fair	Competition.			
Represent	project	experience	accurately	to	prospective	clients	and	offer		services	that	you	
are	capable	of	delivering.		
v. Conflicts	of	Interest.			
Endeavor	to	avoid	conflicts	of	interest	and	disclose	conflicts	which	may	impair	your	
objectivity	or	integrity.	
vi. Fair	Compensation.			
	 Negotiate	fairly	and	openly	with	clients	in	establishing	a	basis	for	compensation.	
vii. Release	of	Information.
CTM	156	–	Introduction	to	Management	in	Construction		
ÓProf	BK	Baiden	2018	 Page	35	
	 Make	statements	that	are	truthful	and	keep	information	and	records	confidential.	
viii. Public	Welfare.			
	 No	discrimination	and	violation	of	law	in	the	performance	of	Services.		
ix. Professional	Development.			
Continue	to	develop	professional	knowledge	and	competency	and	contribute	to	the	
advancement	of	the	profession.		
x. Integrity	of	the	Profession.			
Avoid	self-interest	and	uphold	the	standards	of	the	profession	with	honour	and	dignity.	
	
4.	Main	Responsibilities	
i. Coordinate	the	entire	construction	process,	from	initial	planning	and	foundation	work	to	
completion/commissioning.	
ii. Act	as	intermediary	between	the	clients	and	workers,	the	architect	and	subcontractors,	and	
the	project	and	any	regulatory	personnel.		
iii. Ensure	that	the	construction	process	is	within	budgetary,	time	and	quality	and	safety	limits	
acceptable	to	BOTH	industry	and	Client.	
	
5.	Job	Description	
i. Discuss	plans	with	architects,	surveyors	and	buyers	before	construction	work	starts.			
ii. Plan	work	schedules	for	the	job.	
iii. Prepare	the	site	by	employing	staff,	installing	temporary	offices	and	scheduling	delivery	of	
materials.	
iv. Work	closely	with	the	site	workforce	during	construction.	
v. Monitor	progress,	costs	and	check	quality.	
vi. Make	sure	the	work	meets	legal	requirements	and	Building	Regulations.	
vii. Report	regularly	to	the	client.	
viii. Main	point	of	contact	on	site	for	subcontractors	and	the	public.		
	
6.	Skills	and	Knowledge	
i. Excellent	people	skills	to	work	with	staff.	
ii. Ability	to	motivate	your	team.	
iii. Excellent	organisational	and	planning	skills.	
iv. Ability	to	take	on	responsibility	and	make	decisions.	
v. Good	mathematical	and	IT	skills.	
vi. In-depth	knowledge	of	construction	and	building	methods.	
vii. An	understanding	of	Building	Regulations.	
viii. Knowledge	of	health	and	safety	requirements.
CTM	156	–	Introduction	to	Management	in	Construction		
ÓProf	BK	Baiden	2018	 Page	36	
7.	Career	Opportunities	
i. Construction	and	building	companies	and	specialist	subcontractors.		
ii. Central	and	local	government	departments.		
iii. Utility	companies	and	larger	organisations	like	major	retailers	and	manufacturers.	
iv. Contract	management	or	consultancy.		
v. Teaching	or	support	services,	such	as	health	and	safety	inspection,	quality	control,	etc.	
	
READING	LIST	
1. Cole,	G.	and	Kelly,	P.	(2015),	Management	Theory	and	Practice	8th	Edition,	Cengage	Learning	
EMEA,	UK.		
2. Schermerhorn	JR	(2011).	Introduction	to	Management,11th	Edition,	J	Wiley	&	Sons,	
Australia	
3. Taylor,	FW	(2003),	The	Principles	of	Scientific	Management,	Dover	Publications	Inc,	UK	
4. Calvert,	RE,	Cole,	DCH,	and	Bailey,	GJ	(2011),	Introduction	to	Building	Management	6th	
Edition,	Butterworth-Heinemann,	USA

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